PEP vs. KO, MDLZ, MNST, COKE, FIZZ, DEO, KDP, STZ, ABEV, and BF.B
Should you be buying PepsiCo stock or one of its competitors? The main competitors of PepsiCo include Coca-Cola (KO), Mondelez International (MDLZ), Monster Beverage (MNST), Coca-Cola Consolidated (COKE), National Beverage (FIZZ), Diageo (DEO), Keurig Dr Pepper (KDP), Constellation Brands (STZ), Ambev (ABEV), and Brown-Forman (BF.B). These companies are all part of the "consumer staples" sector.
PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, media sentiment, analyst recommendations, earnings, profitability, dividends, valuation and community ranking.
PepsiCo pays an annual dividend of $5.42 per share and has a dividend yield of 3.3%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.0%. PepsiCo pays out 81.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Coca-Cola pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
PepsiCo has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Coca-Cola received 81 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.27% of users gave PepsiCo an outperform vote while only 67.74% of users gave Coca-Cola an outperform vote.
Coca-Cola has lower revenue, but higher earnings than PepsiCo. PepsiCo is trading at a lower price-to-earnings ratio than Coca-Cola, indicating that it is currently the more affordable of the two stocks.
PepsiCo presently has a consensus target price of $187.58, indicating a potential upside of 11.19%. Coca-Cola has a consensus target price of $68.55, indicating a potential upside of 7.59%. Given PepsiCo's higher possible upside, equities analysts clearly believe PepsiCo is more favorable than Coca-Cola.
In the previous week, Coca-Cola had 10 more articles in the media than PepsiCo. MarketBeat recorded 24 mentions for Coca-Cola and 14 mentions for PepsiCo. PepsiCo's average media sentiment score of 1.12 beat Coca-Cola's score of 0.70 indicating that PepsiCo is being referred to more favorably in the media.
Coca-Cola has a net margin of 23.41% compared to PepsiCo's net margin of 10.00%. PepsiCo's return on equity of 57.37% beat Coca-Cola's return on equity.
73.1% of PepsiCo shares are owned by institutional investors. Comparatively, 70.3% of Coca-Cola shares are owned by institutional investors. 0.1% of PepsiCo shares are owned by company insiders. Comparatively, 1.0% of Coca-Cola shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Coca-Cola beats PepsiCo on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PEP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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